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HomeMy Public PortalAboutCHEQUE GUARD, LLCCheque Guard LLC Burbank CA 91502 (888) 577-"27 Contents C= C= C.0 I. Company Overview 2. Software Summary U) 0 I Special Offer to City of Carson 4. Software Installation 5. On -Site Training and Installation 6. Pricing 7. Acceptance City of Carson MICR Laser Check Printing System My 18, 2007 — Amended February 8, 2008 Page 1 of 6 Ti Cheque Guard LLC Burbank CA 91502 (888) 577-"27 Cheque Guard is pleased to present the following proposal for the installation and implementation of a MICR Laser Check processing system for the City of Carson. After acceptance of this proposal, implementation of the live, "turn key" system will commence at the City of Carson's site within 10 business days of receipt of an executed purchase agreement and other documents and files as outlined on Page 3. Cheque Guard, LLC offers a "turn key" solution combining hardware and software tc securely print MICR -encoded checks. For over 15 years, Cheque Guard has been assisting businesses and municipalities of all sizes with their check and forms printing needs with our ChequeSuite line of products. From MICR Laser Check Printing on Windows and iSeries - AS/400 platforms, to forms printing and management, to secure encrypted signature devices, Cheque Guard adds value to your city by enabling the disbursement process to run more efficiently, more securely and more cost-effectively than ever before. Our newest feature, ChequeSeal, is a patented check fraud prevention product that builds a partnership between a municipality and its bank. Using barcode encryption technology, we enable our customers to protect their checks from counterfeiting and alteration. This closed-loop system of fraud prevention requires the user's bank to be able to read the information in the barcode, so please discuss with us the availability of this product at your banks. Cheque Guard also offers a complete line of MICR and standard toner cartridges, the highly secure SuperBusinessCheck through SAFEChecks, laser printers, and other products. 2. Software Summary Cheque Guard will provide a turnkey check printing solution tailored to meet the City of Carson's specific requirements. Key Features: ChequeSeal: State-of-the-art encryption technology that seals check information (payee name, check amount, issue date, routing and account numbers, Employee IDs, etc.) into an encrypted barcode. Secure Fonts: Make payee name and check amount tamper proof when printed with a hot laser printer and properly designed high security checks. City of Carson MICR Laser Check Printing System July 18, 2007 — Amended February 8, 2008 Page 2 of 6 Cheque Guard LLC Burbank CA 91502 (888) 577-4427 0 o tie I. Signature control:* To control printing of a digital signature based upon check's amount. Data overflow:** prints remittance overflow data on a blank paper instead of wasting checks. Office copy:** User -controlled copy distribution to any laser printer on the network. Auto Split:** The sytem can automatically spool large print jobs to multiple pre - designated printers for faster processing of long check runs. Manual Check Module: For individual on -demand check printing. Positive Pay: Automatically creates positive pay files to send to the bank. Electronic Funds Transfer (EFT): Electronic Payments module. History Log: Auto records all activities including user ID, date and time, and check information. ePort - External Security Device for signatures, fonts and macros. Remotely re - programmable (does not require off-site re -programming). Cheque Guard recommends the use of HP 4200 Series B&W printers (or other multi -input tray printers with HP emulation). 3. Special Offer Presented to the City of CarsoM Cheque Guard offers the ChequeSuite check printing system to the City of Carson on a 30 day trial basis. If the City of Carson chooses not to accept this system, it will have no further obligation, and the deposit and any fees paid by the City of Carson will be promptly refunded (less the cost of training and installation, not to exceed $1250). Cheque Guard agrees to install the software fully functional so the City of Carson may thoroughly evaluate the software during the 30 -day trial period. At the end of the trial period, Cheque Guard will invoice the City of Carson for the system unless Cheque Guard receives a written notification to remove the system. In addition to the above, Cheque Guard extends to the City of Carson at least 20% discount off the normal software and hardware cost. 4. Software Installation Requirements Cheque Guard will schedule the installation date within 10 business days after receiving the following items: • Signed agreement and Purchase Order and deposit • An actual file for existing check printing • Original voided checks of every check style that will be used going forward • An electronic file of the image of the City of Carson's logo -/ Digital Signature(s) sheet V Signed check layout proof sheet City of Car -son MICR Laser Check Printing System 3uly 18, 2007 - Amended February 8, 2008 Page 3 of 6 Cheque Guard LLC Burbank CA 91502 (888) 577-4427 S. Training and Installation Cheque Guard will provide on-site installation and one day (8 hours) of on-site training to City of Carson staff. Additional training time, if needed, can be scheduled at a rate of $1250 per day. 6. Pricing Revised: October 9, 2007 PRODUCT ID DESCRIPTION QTY I Ll�_T' CE DISCOUNT I PRICE Total Check Printin System 01-02001 ChequeSuite/Windows Server edition 1 $10,350.00 $2,070.00 $8,280.00 Complete Check Printing Software for (20%) Windows. 01-02011 ChequeSuite/Windows Client Module 1 $2,200.00 $2,200.00 (Unlimited workstations and up to 4 concurrent users) Hardware 05-04002 EPort - External Security Device - 2 MB - 1 $1,425.00 $580.00 $845.00 Secure Digital Signature/Fonts/Macros Device (updates included in annual maintenance) Training 02-20199 Installation On -Site 1 $1,250.00 One (1) day - On -Site training session. (8 Hours) Annual Afaintenance 01-90002 Annual Maintenance - Software updates and $1,698.75 upgrades - Design and implementation updates - EPort Digital Signature updates. (15% of Hardware and Software price) Total software and Hardware price: Installation & Training: First Year Maintenance: Total First Year Cost: City of Carson MICR Laser Check Printing System July 18, 2007 - Amended February 8, 2008 $11,325.00 $ 1,250.00 $ 1,698.75 Page 4 of 6 Cheque Guard LLC Burbank CA 91502 (888) S77-4427 7. Acceptance All sales agreements require 50% deposit of the cost of proposed hardware and software to finalize the Agreement. Cheque Guard shall not invoice for the balance owed until 30 calendar days after the system is fully Implemented and available for use at the City of Carson's site. If the City of Carson is not satisfied with the Cheque Guard system, it may at any time Within the 30 -day trial period cancel its Purchase order and obtain a prompt refund of its deposit less the installation and training expense not to exceed $1250. Payment terms are net 20 days. Cheque Guard will _qgj devote effort to the development or implementation of the City of Carson's system until receiving a signed copy accepting this proposal, a Purchase Order, and the deposit. Proposal for service is herein agr ble to both parties and accepted by our mutual signatures below. Cheque G hard, LC City of Car S i arm tu r signature: Printed Narne:- Daniel E. Simon Printed Narne: J�� Groomes Title: President Title: City Manager Date: 3/26/08 Date: 2/27/08 City of Carson MICR Laser Check Printing System July 18, 2007 - Amended February 8, 2008 Page 5 of 6 Cheque Guard LLC Burbank CA 91502 (888) S77-4427 tie Amendment (s) The attached proposal and "Special Offer" is amended as follows: As to Section 3 "Special Offer...", the amended text should read: "...Cheque Guard offers the ChequeSuite check printing system to the City of Carson on a 30 day trial basis. If the City of Carson chooses not to accept this system, it will have no further obligation, and the deposit and any fees paid by the City of Carson will be refunded within 30 days of receipt of a letter expressing dissatisfaction with the product (less the cost of training and installation, not to exceed $1250)." As to Section 7 "Acceptance", the amended text should read: "...If the City of Carson is not satisfied with the Cheque Guard system, it may at any time within the 30 -day trial period cancel its Purchase Order and obtain a refund of its deposit within 30 days of receipt of a letter expressing dissatisfaction with the product (less the cost of training and installation, not to exceed $1250)." City of Carson MICR Laser Check Printing System July 18, 2007 — Amended February 8, 2008 Page 6 of 6 CHEQUE GUARD, LLC CHEQUESUITE SOFTWARE LICENSE AGREEMENT TI -IIS SOFTWARE LICENSE AGREEMENT ("License") is made as of this 13th day of March -1 2008 by and between Cheque Guard, LLC with offices located at 512 S. Verdugo Drive, Burbank, CA 91502 ("Licensor") and The City of Carson with offices located at 701 E. Carson Street, Carson, CA 90745 ("Licensee"). WHEREAS, Licensor is in the business of developing and licensing computer software for MICR Laser Check Printing; and WHEREAS, Licensor has developed certain software entitled ChequeSuite as described in the proposal (dated July 18, 2007) provided to Licensee by Licensor; and WHEREAS, Licensor has expertise and experience in licensing, implementing and installing ChequeSuite for Business Entities; and WHEREAS, Licensor is the sole and exclusive owner of ChequeSuite and is authorized to license ChequeSuite for use by Business Entities; and WHEREAS, Licensee has certain check printing requirements and has discussed said requirements with Licensor, and Licensor has recommended ChequeSuite for use by Licensee in addressing the check printing requirements of Licensee; and WHEREAS, in reliance upon the expertise and experience of Licensor, Licensee desires to obtain from Licensor a license to use ChequeSuite. NOW, THEREFORE, in consideration of the mutual benefits of the covenants and restrictions herein contained, Licensor and Licensee hereby agree as follows: 1 loinalkin�� Section 1.0 1 --Recitals: The above recitals and identification of parties is true and correct. Section 1.02 -- Definitions: The following definitions shall apply: (1) Acceptance Date: The term "Acceptance Date" shall mean the date the Software is accepted by Licensee as provided under this License. V2 (2) Cancellati*i-Notic : Thc term "Cancellation Notice" shall mean that written notice sent by one party to this License to the other party to this License seeking to cancel this License because of breach by such other party. (3) Comput : The term "Computer" shall mean the computer equipment listed in Exhibit A (including, but not limited to, hardware, firrnware and operating system software used in connection therewith), including any and all additional or replacement equipment attached thereto or integrated therewith by Licensee during the License Term as well as any hardware, firmware or operating software updates, revisions, or upgrades thereto. (4) Delivery Dat : The term "Delivery Date" shall mean the date which is thirty-one days after the Effective Date. (5) Documentation: The term "Documentation" shall mean that certain proposal submitted to Licensee by Licensor on July 18, 2007 and amended on October 9, 2007 and Feruary 8, 2008 as well as the user manuals, systems documentation, brochures and training materials, where applicable, for the Software (which are incorporated herein by this reference) including all modifications, improvements, replacements, updates, enhancements, additions, upgrades and changes thereto made from time to time during the License Term. (6) Effective Date: The term "Effective Date" shal mean the date this License is executed by Licensee. (7) Implemen: The terin "implement" and variants thereof (including, but not limited to, the terms "implementation", "implementing" and "implemented") shall mean to install and make fully operational for user access and use. Implementation Date: The term "Implementation Date" shall mean the date that Licensee acknowledges in writing that Licensor has completed implementation of the Software and Licensee data files on the Computer. (9) License Fe : The term "License Fee" shall mean an amount of money equal to eight thousand, two hundred -eighty dollars ($8,280.00) representing the core software, plus two thousand, two hundred dollars ($2,200) representing Client Module for unlimited workstations with up to 4 concurrent users. (10) License Terrn: ne term "License Term" shall mean a period starting with the Effective Date and continuing perpetually. CAR08 0 Mh I I e ft -lo u -a 1 r d (11) Software: The term "Software" shall mean the object code and executables for the Windows version of ChequeSuite as described in the Documentation, as improved, modified, replaced, updated, enhanced, upgraded, corrected, maintained and further developed from time to time during the License Terrn . Section 2.01 -- Grant of License: Licensor hereby grants Licensee a non-exclusive, nontransferable, perpetual license to operate and use the Software on the Computer and to use the Documentation for the License Tenn. Section 2.02 -- Copies: Licensee shall have the right to create, maintain and implement current copies of the Software for back-up, operational and archival purposes. Licensee shall have the right to create and maintain copies of the Documentation for internal use. Section 2.03 -- IMplementation and Delively: Licensor shall implement the Software on the Computer by the Delivery Date. Section 2.04 -- Risk of Loss: Licensor shall assume the risk of loss to the Software and Documentation until the Implementation Date. Licensee shall assume the risk of loss to the Software and Documentation as of the Implementation Date. Section 2.05 -- Data Files: Licensor shall be responsible for creating, loading and implementing the data files required by Licensee in using the Software within ten days after the Delivery Date. Licensee shall provide support in creating, loading and implementing such data files pursuant to the guidance and direction of Licensor. Said data files shall be maintained by Licensee starting on the Acceptance Date. Starting on the Acceptance Date, Licensee shall be responsible for maintaining adequate back-up data files. Section 2.06 -- Acceptance: Starting on the Implementation Date, Licensee shall operate and use the Software on a test basis for thirty days ("Acceptance Period"). Unless Licensee rejects the Software in writing before the Acceptance Period expires, the Software shall be deemed accepted the day immediately next following the last day of the Acceptance Period. If Licensee rejects the Software, Licensee shall have no further obligation to licensor, other than the cost of implementation and training. Section 2.07 -- Disaster Recove : If the Software or Documentation is damaged or destroyed, Licensor shall replace such Software and Documentation free of any charge, assessment or cost to Licensee. Section 3.01 -- Software Ownership and Title: Title to the V2 Software including applicable ownership rights to patents, copyrights, trademarks and trade secrets therein shall remain the exclusive property of Licensor. Section 3.02 -- Notice: Licensee shall not remove any copyright notices, trademarks, tradenames, servicemarks or any other proprietary markings on the Software or the Documentation, or any related materials. Section 3.03 -- Confidentialit : Licensor hereby acknowledges that in implementing the Software, Licensor may learn information which is confidential and proprietary to Licensee or the residents of facilities managed by Licensee. Licensor hereby agrees not to disclose any inforination identified by Licensee as confidential or proprietary. Section 3.04 -- Reverse Enizineerin : Licensee shall not reverse engineer the Software. Licensee shall not disclose or copy the Software or Documentation except as required to use the Software as permitted under this License. Section 4.01 -- Software Performance: Licensor represents and warrants that the Software shall perform on the Computer as described in the Documentation. Licensor shall correct any failure of the Software to perform in accordance with the Documentation. Section 4.02 -- Services Warran : The services to be performed under this License by Licensor shall be performed on a best efforts basis and in a timely and professional manner by qualified computer software personnel familiar with the Software. Section 4.03 -- Original Developmen : Licensor represents and warrants that use of the Software by Licensee shall not inftinge upon or violate any patent, copyright, trade secret or other right of any third party. Section 4.04 -- Indemnification: Licensor shall defend, indemnify and hold harmless Licensee (including employees, consultants, agents, and subcontractors of Licensee) against any liability arising from the negligence of Licensor or any claim by any third party against Licensee arising from, or related to, Licensee's use of the Software, including (but not limited to) any claimed violations of trade secrets, proprietary information, trademark, copyright or any patent rights. This indemnification shall survive termination of this License. If Licensee's quiet enjoyment and use of the Software is disrupted as a result of a third party claim, Licensor shall perfon-n one or all of the following actions within one year of the date such third party's claim is discovered by Licensee: (1) Rei)lacement: Replace the Software by implementing on the Computer a noninfiinging software product of equivalent functional and performance capability of the Software, as described in the Documentation; CAR08 10H�UW 1TV e (2) Modification: Modify the Software to avoid the infringement without eliminating the functional and performance capabilities of the Software as described in the Documentation; (3) Obtain License: Obtain a license from the third party claiming infringement for Licensee's use of the Software. Section 4.05 -- Authority to Grant License: Licensor hereby represents and warrants that Licensor has the authority to grant the license granted by Licensor to Licensee hereunder. T'his warranty shall survive termination of this License. Section 4.06 -- Cooperation: Licensee shall cooperate with Licensor by providing infon-nation and access to the Computer as reasonably requested by Licensor. Licensor shall cooperate with all government inquiries and determinations of costs incidental to this License and shall provide investigators and government representatives with access to Licensor contracts, accounting books, financial records and documents as required by such investigators and representatives to determine such costs. Section 4.07 -- Compute : Licensor represents and warrants that Licensor has evaluated the Computer and that the Computer shall satisfy the requirements of Licensee in using the Software. Section 5.01 -- License Fee: Licensee shall pay one-half of the License Fee on the Implementation Date and the remaining balance of the License Fee on the Acceptance Date. Section 5.02 — Other Fees: Other non -licensing fees set forth in the proposal dated July 18, 2007 and revised October 9, 2007, shall be due on the Acceptance Date. Section 6.01 -- Assignments: Assignments of rights hereunder without the prior written consent of Licensee shall be void. Section 6.02 -- Entire Agreement: Excepting the Software Maintenance Agreement, this License contains the entire understanding of the parties concerning licensing of the Software and supersedes previous verbal and written agreements between the parties concerning licensing of the Software. Section 6.03 -- Equitable Remedies: The parties hereby acknowledge that damages at law may be an inadequate remedy. Therefore, Licensee shall have the right of specific performance, injunction or other equitable remedy in the event of a breach of this License by Licensor. Section 6.04 -- Amendments and Modifications: Waivers, V2 alterations, modifications or amendments of a provision of this License shall not be binding unless such waiver, alteration, modification or amendment is in writing and signed by an authorized representative of both parties. Section 6.05 -- Severability: If a provision of this License is rendered invalid, the remaining provisions shall remain in full force and effect. Section 6.06 -- Caption : The headings and captions of this License are inserted for reference convenience and do not define, limit Or describe the scope or intent of this License or any particular section, paragraph, or provision. Section 6.07 -- Counterparts: This License may be executed in multiple counterparts, each of which shall be an original, but which together shall constitute one and the same instrument. Section 6.08 -- Governing La : This License shall be governed by the laws of the State of California and venue shall be Los Angeles County. Section 6.09 -- Notice: Notices shall be in writing and shall be deemed delivered in person when delivered by hand or mailed postage prepaid by Certified or Registered Mail -- Return Receipt Requested -- to the address designated below. Notice shall be deemed given on the date of receipt -- as evidenced in the case of Certified or Registered Mail by Return Receipt. LICENSOR: ADDRESS: 512 S. Verdugo Drive, Cheque Guard, LLC Burbank, CA 91502 LICENSEE: ADDRESS: City of Carson 701 E. Carson Street Carson, CA 90745 Section 6.10 -- Pronouns/Gender: Pronouns shall refer to the masculine, feminine, neuter, singular or plural as the context shall require. Section 6.11 -- Waiver: Waiver of breach of this License shall not constitute waiver of another breach. Failing to enforce a provision of this License shall not constitute a waiver or create an estoppel from enforcing such provision. Section 6.12 -- Relationship of the Parties: It is agreed that the relationship of the parties is primarily that of licensee and licensor. Nothing herein shall be construed as creating partnership, employment relationship, or agency relationship between the parties, or as authorizing either party to act as agent for the other. Each party maintains its separate identity. CAR08 Section 6.13 -- Governing Law and Arbitration: You agree to settle all disputes, controversies, or claims relating to or arising from this Agreement in accordance with the Commercial Arbitration Rules of the American Arbitration Association ("AAA Rules" and/or "Arbitration") in effect as of the Effective Date of this Agreement and in accordance with the applicable laws of the State of California as it relates to contracts entered into and performed therein. All Arbitration conferences and hearings will be held in Los Angeles, California, USA. In all other circumstances, this Agreement shall be governed, enforced and construed in accordance with the laws of the State of California, without regard to its conflict of laws provisions. The state and federal courts of the State of California shall have exclusive jurisdiction for any action or proceeding arising out of or related to this Agreement. Cheque Guard, LLC expressly reserves any and all rights to pursue equitable relief including, but not limited to, temporary restraining orders and preliminary injunctions, irrespective of the AAA Rules. Section 6.14 -- Assurances: Each party hereby represents and warrants that all representations, warranties, recitals, statements and information provided to each other under this License are true, correct and accurate as of the date of this License to the best of their knowledge. IN WITNESS WHEREOF, this License has been granted as of the date first written above. LICENSOR: C Q HEQUE GUARD, LLC BY: ie E. Simon, President Date: February 11, 2008 LICENSEE: City of Carson By: JeQro =,Ci=tyManager Date:—. 3//3/ 6,f V2 4 CAR09 an CHEQUE GUARD, LLC Agreement 's6eking to cancel this Agreement CHEQUESUITE because of breach by such other party. SOFTWARE MAINTENANCE AGREEMENT (4) Co=ute : The tenn "Computer" shall have the same meaning as set forth for the term "Computer" THIS SOFTWARE MAINTENANCE in the Software License. AGREEMENT ("Agreement") is made as of this 13-th day of March , 2008 by and between (5) Customer: The terni "Customer" shall mean The Cheque Guard, LLC with offices located at 512 S. Verdugo City of Carson. Drive, Burbank, CA 91502 ("Vendor") and The City of Carson with offices located at 701 E. Carson Street, (6) Defect: The terni "Defect" shall mean Carson, CA 90745 ("Customer"). programming or software design errors which substantially impair the performance, utility and 1110001W-1�� functionality of the Software on the Computer as represented in the Documentation. WHEREAS, Vendor is a California corporation formed for the purpose of software development, sales, maintenance and (7) Documentation: The term "Documentation" shall licensing; and mean that certain ChequeSuite User's Guide, including all updates thereto. WHEREAS, Vendor owns certain computer software for the printing of MICR laser checks (ChequeSuite); and (8) Effective Date: The term "Effective Date" shall mean the date this Agreement is signed by Vendor. WHEREAS, Customer and Vendor have executed that certain Software License Agreement herewith under which (9) Enhancement: The term "Enhancement" shall Customer obtained the right to use ChequeSuite ("Software mean executable code for modifications to the License"); and Software which improve or expand the functionality or features of the Software. WHEP,EAS, Customer desires Vendor to provide Customer with certain maintenance, and user support services for ChequeSuite. NOW, THEREFOR -E, in consideration of the mutual benefits of the covenants and restrictions herein contained, Vendor and Customer hereby agree as follows: Section 1.0 1 --Recitals: The above recitals and identification of parties is true and correct. Section 1.02 -- Definitions: 'Me following definitions shall apply: (1) Acceptance Date: The terni "Acceptance Date" shall mean the date an Enhancement or Update is accepted by Customer as provided under this Agreement. (2) Access: The term "access" and variants thereof shall mean to store data in, retrieve data from or otherwise approach or make use of (directly or indirectly) through electronic means or otherwise the Software. (3) Cancellation Notice: The term "Cancellation Notice" shall mean that written notice sent by one party to this Agreement to the other party to this V2 (10) lml)lemen: The term "implement" and variants thereof (including, but not limited to, the terms "implementation", "implementing" and "implemented") shall mean to load and make available for user access. (11) Maintenance Fee: The term "Maintenance Fee" shall mean that certain fee charged to Customer by Vendor for maintenance and support as provided under this Agreement. (12) Maintenance Term: The term "Maintenance Term" shall mean a period of time starting with the Effective Date and continuing one year thereafter, except as extended as provided under this Agreement. (13) Software: The term "Software" shall mean the executable code for that certain software commonly referred to as ChequeSuite as set forth under the Software License, including Enhancements and Updates thereto. (14) Update: The term "Update" shall mean executable code for modifications to the Software which improve or expand the performance of the Software on the Computer. Cars08 (15) (16) (17) P Mh_ t i Me Defect Notice: The term "Defect Notice" shall mean that certain written notice from Customer to Vendor identifying discrepancies between the actual performance of an Enhancement or Update and the performance represented in the Documentation describing the purpose, utility or function of such Enhancement or Update. Unauthorized Access: The tenn "Unauthorized Access" shall mean any access to the Software or Documentation except for the exclusive purposes of managing the MICR check writing process, demonstrating the performance, utility and functions of the Software, and training employees of Licensee in the use of the Software. Unauthorized User: The term "Unauthorized User" shall mean any individual who accesses the Software or Documentation except for employees authorized by Licensee to access the Software for the purposes of managing the MICR check writing process, demonstrating the performance, utility and functions of the Software and training employees of Licensee in the use of the Software. Section 2.01 -- Defect Resolution: Vendor shall correct any Defects in the Software within a reasonable time after such Defect is reported to Vendor by Customer, as follows: H (2) (3) (4) V2 Problem Reporting: Upon discovering a Defect, Customer shall report the Defect ("Service Request"). Telephone Support: Within four (4) hours after receiving a Service Request, Vendor shall provide telephone support in the form of consultations, assistance and advice concerning use of the Software and correction of the Defect ("Telephone Support"). Off-site Support: If a Defect is not corrected through Telephone Support within forty eight (48)hours after receiving a Service Request, Vendor shall conduct tests and analyses at Vendor's facility designed to reproduce, isolate and correct the Defect using data and information provided to Vendor by Customer ("Off-site Support"). On-site Support: If a Defect is not corrected by Vendor through Off-site Support within a reasonable time after receiving a Service Request, Vendor personnel shall visit Customer's facility for the purpose of correcting the Defect ("On-site Services"). If the Defect is not corrected within a reasonable time after commencing such On-site Services, Vendor shall implement work around processes designed to minimize the impact of the Defect. Section 2.02 -- Enhancements: Vendor shall implement all Enhancements and Updates on the Computer within thirty (30) days after the date that such Enhancement or Update is released by Vendor. Along with such Enhancements and Updates, Vendor shall provide Customer with documentation describing the purpose, function and utility of such Enhancement or Update. Section 2.03 -- Acceptance Testin : Upon completing implementation of an Enhancement or Update, Vendor shall demonstrate the Enhancement or Update to Customer. Upon completing demonstration of the Enhancement or Update, the Enhancement or Update shall be deemed delivered to Customer. The Enhancement or Update shall be deemed accepted by Customer thirty days after delivery of the Enhancement or Update unless Defect Notice is received by Vendor by such thirtieth day. Upon receiving Defect Notice from Customer, Vendor shall review the asserted discrepancy to determine if the discrepancy is valid. If, in the reasonable professional judgment of Vendor the discrepancy is valid, Vendor shall correct the discrepancy and resubmit the Enhancement or Update for acceptance by Customer. If, in the reasonable professional judgment of Vendor such discrepancy is not valid, Vendor shall submit to Customer a written explanation of the reasons why such asserted discrepancy is not valid. The written explanation of Vendor set forth herein shall be deemed accepted by Customer within ten days after Customer's receipt of the written explanation unless Vendor receives from Customer written notice rejecting such explanation within such ten day period, in which case the Enhancement or Update shall not be implemented. Upon receipt of Defect Notice from Customer by Vendor as set forth above, the Enhancement or Update shall be deemed accepted by Customer except as to the discrepancies specified in the Defect Notice. Section 3.01 -- Customer Consultations: Vendor shall provide Customer with telephone consultations in answering questions concerning use of the Software. All such telephone consultations shall be subject to the discretion of Vendor. Section 3.02 -- Proffam Modifications: Upon discovering a desired modification for the Software, Customer may request implementation of the modification. Any such request shall be submitted to Vendor in writing. Implementation of any such modification shall be subject to the sole and exclusive discretion of Vendor. Any service provided by Vendor in implementing any such modification shall be at the time and material rates of Vendor prevailing at the time such services Cars08 are rendered. Section 3.03 -- Customer Cooperation: Customer shall cooperate with Vendor by granting unrestricted access to the Software and the Computer, and providing data and information reasonably required by Vendor to correct a Defect. Customer shall provide Vendor with a method of access to the Computer and the Software. Section 3.04 -- Schedule Restrictions: The services to be provided by Vendor hereunder shall be performed only during the hours of 8:30 a.m. through 5:00 p.m., Pacific Time, Monday through Friday (excluding holidays). Section 3.05 -- Software Trainin : During the first thirty days after delivery of the Software, Vendor shall provide on- site individual training and customer support to Customer. Such on-site training shall include individualized instruction and training on using and operating the Software for persons designated by Customer. Such training shall include instructions and guidelines on performing all of the functions and processes described in the Documentation. Section 3.06 -- Enhancement/Update Trainin : After implementing an Enhancement or Update, Vendor shall provide instructions and guidelines on the use of such Enhancement or Update. Section 4.01 -- License Grant: Vendor hereby grants to Customer a non-exclusive and non -transferable license to use the Enhancements and Updates and Documentation for the Maintenance Tenn. Section 4.02 -- Risk of Loss: Customer assumes risk of loss to an Enhancement or Update as of the Acceptance Date for such Enhancement or Update. Section 4.03 -- Authorized Use: Customer shall prevent Unauthorized Users from accessing the Software. Customer shall prevent Unauthorized Access to the Software. Section 5.01 -- Maintenance Fee: Customer shall pay Vendor a Maintenance Fee as of the Effective Date and each anniversary of the Effective Date (Exhibit A). Section 5.02 -- Consulting Fee: Services provided Customer by Vendor which are not provided under this Agreement shall be invoiced to Customer by Vendor at Vendor's published time and material rates prevailing at the time the services are rendered plus actual travel and per them costs incurred by Vendor in providing such services. V2 Section 5.03 -- Expenses: All taxes (except income taxes), insurance, postage, travel and shipping costs incurred by Vendor in performing services under this Agreement shall be paid by Customer. Section 5.04 -- Invoicin- and Pamen : Vendor shall invoice Customer annually for fees and expenses in providing services under this Agreement. Customer shall pay any such invoice in full within ten days of receiving such invoice. Other consulting fees will be invoiced upon completion of work and should be paid in full within ten days of receiving such invoice. Section 6.01 -- Termination Limitations: This Agreement may only be terminated as provided under this Article VI. Section 6.02 -- Term and Renewal: This Agreement shall be valid for the Maintenance Term except as extended hereunder. The Maintenance Term shall renew for one year on each anniversary of the Effective Date unless terminated ten days in advance by written notice from one party to the other party to this Agreement. Section 6.03 -- Ten-nination: Either party may temiinate this Agreement for convenience with thirty days written notice of termination to the other party. Section 6.04 -- Cancellation for Cause: If a party violates its obligations under this Agreement, the other party may cancel the Agreement by sending Cancellation Notice describing the noncompliance to the noncomplying party. Upon receiving Cancellation Notice, the noncomplying party shall have thirty days from the date of such notice to either cure any such noncompliance or, if the noncompliance cannot be cured within such thirty day period, to begin curing such noncompliance in good faith. If such noncompliance is not cured within the required thirty day period, or, if the noncompliance cannot be cured within such thirty day period and the noncomplying party does not make a good faith effort to begin curing such noncompliance within such thirty day period, the party providing Cancellation Notice shall have the right to cancel this Agreement as of the thirty-first day after the date of the Cancellation Notice. Section 6.05 -- Refund in the Event of Termination: If this Agreement is terminated by Customer, Vendor shall refund any maintenance fees paid by Customer before the termination date for maintenance services after the tem-iination date. For purposes of this Article the tenn "termination date" shall mean the effective date of terniination as specified in the notice of termination, or if no such termination date is specified the termination date shall be deemed to be the date customer delivers termination notice to Vendor. CarsO8 e ftl Liu, a i I Rd W2AqLX1,uW Section 7.01 -- Maintenance Warran : Vendor warrants that Vendor shall maintain the Software free from all Defects and that the Software shall conform to the performance capabilities, functions and other standards applicable thereto as set forth in this Agreement and the Software License. Vendor warrants that all Enhancements and Updates implemented by Vendor shall be fully compatible with each other, the Software and the Computer. Section 7.02 -- Service Warran : The services to be provided by Vendor hereunder shall be performed in a timely and professional manner by qualified software personnel familiar with the Software and shall conform to the standards generally observed in the industry for similar services. Such services shall be in compliance with all applicable laws, rules, regulations or orders. Section 7.03 -- Software Modifications: If the Software is modified by any party other than Vendor, Vendor shall be discharged from any further obligations under this Agreement. Any such discharge shall not affect the obligations of Customer which shall be continuing and binding despite such discharge. Section 7.04 -- Original Development: Vendor represents and warrants that the Enhancements and Updates shall not inflinge upon or violate any patent, copyright, trade secret or other property right of any third party. Section 7.05: WARRANTY LIMITATION: THE FOREGOING WARRANTIES ARE IN LIEU OF ALL OTHER WARRANTIES EXPRESSED OR IMPLIED, INCLUDING BUT NOT LIMITED TO, IMPLIED WARRANTIES OF FITNESS FOR A PARTICULAR PURPOSE AND WARRANTIES OF MERCHANTABILITY. Section 8.01 -- Ownership and Title: Title to the Enhancements, Updates and Documentation, including ownership rights to patents, copyrights, trademarks and trade secrets therein shall be the exclusive property of Vendor. Section 8.02 -- Reverse Engineerin : Customer shall not reverse engineer an Enhancement or Update. Section 8.03 -- Confidentiali : Customer hereby acknowledges that the Enhancements, Updates, and Documentation may contain infon-nation that may be trade secret and proprietary to Vendor. Customer hereby agrees not to disclose such information except to persons and organizations expressly authorized by Vendor to receive such information. Customer shall not remove or alter any vp�' copyright notices or proprietary legends affixed by Vendor to such Enhancements, Updates or Documentation. Section 8.04 -- Copie : Vendor shall make available to Customer an additional copy of the Enhancements, Updates and Documentation for back-up use on the Computer. Customer shall not copy Enhancements, Updates or Documentation and shall not allow the Enhancements, Updates or Documentation to be copied without the prior written consent of Vendor. Section 8.05 -- Limitation of Damage : Vendor shall not be liable for any failure to perform its obligations under this Agreement because of circumstances beyond the control of Vendor, which such circumstances shall include (without limitation) natural disaster, terrorisiri, labor disputes, war, declarations of governments, transportation delays, failure of the Computer, telecommunications failure and misuse of the Software by Customer. Section 8.06 -- Continuation: ne terms and provisions of this Article VIII shall survive termination of this Agreement. Section 9.01 -- Assignments: All assignments of rights under this Agreement by Customer without the prior written consent of Vendor shall be void. Section 9.02 -- Entire Agreemen : Excepting the Software License and the Software Escrow Agreement between the parties hereto, this Agreement contains the entire understanding of the parties and supersedes previous verbal and written agreements between the parties concerning maintenance, user support and training services for the Software. Section 9.03 -- Equitable Remedies: The parties hereby acknowledge that damages at law may be an inadequate remedy. Therefore, Customer shall have the right of specific performance, injunction or other equitable remedy in the event of a breach of this Agreement by Vendor. Section 9.04 -- Amendments and Modifications: Waivers, alterations, modifications or amendments of a provision of this Agreement shall not be binding unless such waiver, alteration, modification or amendment is in writing and signed by an authorized representative of both parties. Section 9.05 -- Severability: If a provision of this Agreement is rendered invalid, the remaining provisions shall remain in full force and effect. Section 9.06 -- Cations: The headings and captions of this Agreement are inserted for reference convenience and do not define, limit or describe the scope or intent of this Agreement CarsO8 Rbh�Mue Or any particular section, paragraph, or provision. Section 9.07 -- CounteMarts: This Agreement may be executed in multiple counterparts, each of which shall be an original, but which together shall constitute one and the same instrument. Section 9.08 -- Governing Law: This Agreement is governed by the laws of the state of California and venue shall be Los Angeles County Section 9.09 -- Notice: Notices shall be in writing and shall be deemed delivered in person when delivered by courier or mailed postage prepaid by Certified or Registered Mail -- Return Receipt Requested -- to the person and address designated below. Notice shall be deemed given on the date of receipt -- as evidenced in the case of Certified or Registered Mail by Return Receipt. Vendor Address Cheque Guard, LLC 512 S. Verdugo Drive Burbank, CA 91502 Customer Address City of Carson 701 E. Carson Street Carson, CA 90745 Section 9.10 -- Pronouns/Gender: Pronouns shall refer to the masculine, feminine, neuter, singular or plural as the context shall require. Section 9.11 -- Bankruptc : If either party must institute, defend, appear or attend a bankruptcy proceeding as a result of the filing of bankruptcy by the other party, fees and expenses shall be born by the filing party. If either party has a bankruptcy proceeding filed against it, the other party shall recover attorney fees, expert witness fees, and other costs incurred by such other party in connection with the bankruptcy proceeding, hearing or trial. Section 9.12 -- Waiver: Waiver of breach of this Agreement shall not constitute waiver of another breach. Failing to enforce a provision of this Agreement shall not constitute a waiver or create an estoppel from enforcing such provision. V2 Section 9.13 -- Relationship of the Parties: It is agreed that the relationship of the parties is primarily that of Customer and Vendor. Nothing herein shall be construed as creating partnership, employment relationship, or agency relationship between the parties, or as authorizing either party to act as agent for the other. Each party maintains its separate identity. Section 9.14 -- Arbitration: You agree to settle all disputes, controversies, or claims relating to or arising from this Agreement in accordance with the Commercial Arbitration Rules of the American Arbitration Association ("AAA Rules" and/or "Arbitration") in effect as of the Effective Date of this Agreement and in accordance with the applicable laws of the State of California as it relates to contracts entered into and performed therein. All Arbitration conferences and hearings will be held in Los Angeles, California, USA. In all other circumstances, this Agreement shall be governed, enforced and construed in accordance with the laws of the State of California, without regard to its conflict of laws provisions. The state and federal courts of the State of California shall have exclusive jurisdiction for any action or proceeding arising out of or related to this Agreement. Cheque Guard, LLC expressly reserves any and all rights to pursue equitable relief including, but not limited to, temporary restraining orders and preliminary injunctions, irrespective of the AAA Rules. Section 9.15 -- Assurances: Each party hereby represents and warrants that all representations, warranties, recitals, statements and infon-nation provided to each other under this Agreement are true, correct and accurate as of the date of this Agreement to the best of their knowledge. Section 9.16 -- Litigation Expense: In the event of litigation or arbitration arising out of this Agreement, each party shall pay its own costs and expenses of litigation and arbitration (excluding fees and expenses of arbitrators and administrative fees and expenses of arbitration). Cars08 Q phequWe IN WITNESS WHEREOF, this Agreement has been executed as of the date first written above. VENDOR: LLC LI -MA Date: February 8, 2008 CUSTOMER: City of Carson BY: tl-� '----jgjL6rne - oo C anager _�) 2�e �, Date: V2 Cars08 EXHIBIT A A. Maintenance Fee: $1,698.75 as of Effective Date (15 % of Original software and hardware cost) $1,698.75 at each anniversary of Effective Date Customer shall pay Vendor a Maintenance Fee as of the Effective Date and each anniversary of the Effective Date. Vendor shall establish the Maintenance Fee for a Maintenance Term by written notice to Customer at least thirty days in advance of the first day of such Maintenance Tenn. V2 Cars08